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Suppose the marginal environmental damages per ton of CO 2 equal $20 in tropical countries and $70 in temperate countries.There are 14 tropical countries and
Suppose the marginal environmental damages per ton of CO2equal $20 in tropical countries and $70 in temperate countries.There are 14 tropical countries and 40 temperate countries. All countries have marginal abatement cost for controlling CO2is equal toMAC=50a, whereais the amount of abatement an individual country does.
How much CO2will be abated in total around the world(the sum of all individual country's choices ofa)if countries cooperate to achieve the global optimum?
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